KARACHI: The State Bank of Pakistan (SBP) on Wednesday suspended the authorization of five Exchange Companies of ‘B’ Category for non compliance of rules and regulations.

SBP has suspended license of M/s International Exchange Company –B (Pvt) Limited, M/s World Wide Exchange Company –B (Pvt) Limited, M/s World Exchange Company –B (Pvt) Limited, M/s Universal Exchange Company –B (Pvt) Limited and M/s United Exchange Company –B (Pvt) Limited.

According to SBP the authorisation of these five exchange companies of “B” Category has been suspended with immediate effect till further orders due to serious violations of the State Bank’s regulations and instructions.

SBP suspends authorisation of two exchange companies

All these Exchange Companies-B Category, their head offices and all branches have been debarred from undertaking any kind of business activity during the suspension period.

In order to streamline the currency exchange business, the SBP has recently introduced the structural reforms for the Exchange Companies and decided that various types of existing Exchange Companies and their franchisees will be consolidated and transformed into a single category of Exchange Companies with a well-defined mandate. In addition, minimum capital requirement increased from Rs 200 million to Rs 500 million.

Now the SBP is more vigilant on the exchange companies and strict actions are being taken. During the last one month authorization of some 9 exchange companies have been suspended on serious violations.

Copyright Business Recorder, 2023